Consider the relationship between price elasticity of demand and total revenue, and why Homer didn’t make the smartest business decision when raising the price of admission.

Watch the video clip from Bart Gets an Elephant. (View Transcript.)
Consider the relationship between price elasticity of demand and total revenue, and why Homer didn’t make the smartest business decision when raising the price of admission. For this week’s discussion question, you should pick two products: one that is relatively price inelastic and another that is relatively price elastic. You can determine a product’s relative price elasticity by considering the Determinants of the Price Elasticity of Demand. You should begin by defining your product in terms of the determinants and then describe how increases in the price would affect total revenue.
Would it make good business sense to be the one producing and selling these products? Why or why not?

Used in text citations and reference in APA formatting in your initial post.
Use complete sentences.
Your initial post should be at least 3-4 paragraphs that fully addresses the question.
For your APA formatting in the course and discussion board, be sure you are incorporating in text citations when referencing a source, discussing data or paraphrasing.

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